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Germany is used to running its economy with the brake on. Ever since the 2008 financial crisis Berlin has sought to burnish a reputation as the world capital of fiscal discipline, with a near-pious aversion to debt and pride in strong government finances. Under a rule known as the "debt brake" - introduced in 2009 by Angela Merkel to show Germany was committed to balancing the books after the banking crash - the federal government is required to limit annual borrowing to 0.35% of GDP. After this weekend's elections it might not be long before the constitutional handbrake is relaxed…
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June 13, 2025
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